USDT Market Cap Skyrockets: Is a Crypto Bull Market on the Horizon?
According to data from CoinMarketCap (CMC), as of June 1, the circulating supply of USDT stands at $83.23 billion.
Historically, there has been a strong correlation between the circulating supply of Tether and significant price expansions in the Bitcoin and cryptocurrency markets.
The current record-high circulation of USDT and prevailing spot rates indicate the possibility of a similar market pattern unfolding.
USDT is a stablecoin that is pegged to the value of the USD, the world’s largest reserve currency. Tether Holdings issues this token, which is available on multiple blockchains, including Ethereum and Tron.
However, most Tether tokens are circulated on the Ethereum and Tron networks. Tron, a smart contracts platform and Ethereum competitor, has witnessed increased usage due to fluctuating fees and scalability challenges Ethereum users face.
As of June 1, over 50% of the total USDT supply was in circulation on the Tron network. On-chain data reveals that approximately $46.1 billion of USDT existed as TRC-20 tokens in Tron, distributed among 26,001,516 addresses conducting 2,272,188 transfers in the past 24 hours.
In contrast, around $36.28 billion worth of USDT, adhering to the ERC-20 standard, circulated on the Ethereum network. This amount was distributed across 4,427,642 unique addresses, which collectively performed 188,122,012 transfers.
With a market capitalization exceeding $83.2 billion and continuing to rise, USDT remains the dominant stablecoin in the market.
In terms of competing stablecoins, USDC, issued by Circle, holds the second position in terms of liquidity, with a circulating supply of $28,853,137,492. Unlike Tether, USDC undergoes full audits and releases monthly attestation of its reserves.
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The depegging incident of USDC occurred briefly when Circle’s exposure to the Silicon Valley Bank (SVB) led to its value dropping to as low as $0.87 against the USD. Although USDC eventually regained its peg, users opted to convert to other stablecoins, primarily USDT and even Bitcoin. This depegging coincided with the Bitcoin and Ethereum rally from mid-March 2023.
On the other hand, BUSD, a stablecoin previously issued by Paxos, currently has a market cap of $5,167,197,461 as of June 1.
The recent surge in Tether usage does not guarantee a forthcoming upturn in the cryptocurrency market.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
